TECK RESOURCES LTD

COPPER SEGMENT

Notes:

Performance

Gross profit from our copper segment increased to $1.4 billion in the first quarter from $343 million in the same period last year (see table below), primarily due to significantly higher copper prices and higher copper sales volumes. Q1 2026 sales volumes at QB achieved a quarterly record and exceeded production with the shipment of inventory carried over from year-end 2025.

Copper production increased to 140,000 tonnes in the first quarter compared with 106,100 tonnes in the same period last year. The increase was due to higher production at QB, which had an extended shut-down in Q1 2025, higher throughput and grades at Highland Valley Copper, and higher grades at Antamina, both as expected in the mine plan. QB produced 55,500 tonnes of copper in the first quarter compared with 42,300 tonnes in the same period last year. In Q1 2026, the continued execution of the QB action plan resulted in higher throughput with enhanced reliability and consistency in plant operation supporting higher sustained operating rates.

The table below summarizes the change in gross profit in our copper segment for the quarter.

Property, plant and equipment expenditures in the first quarter totalled $540 million, including $284 million in sustaining capital. Sustaining capital included $232 million at QB, of which $149 million related to ongoing TMF development work. Growth capital of $256 million primarily related to the Highland Valley Copper Mine Life Extension (HVC MLE) project construction and development activities and Zafranal project work, outlined below.

Capitalized stripping costs were $83 million in the first quarter compared with $47 million in the same period last year. The increase relates to $34 million of capitalized stripping costs related to HVC MLE.

Markets

In the first quarter of 2026, LME copper prices increased 15.9% compared with the previous quarter and 37.5% over the same period last year, averaging US$5.83 per pound. This represented the second quarter in a row of all-time nominal highs in quarterly average prices, extending Q4 2025's price momentum. Even following a US$0.50 drop in price in March 2026 as the Middle East conflict dampened growth expectations, the LME cash price moved back above US$5.50/lb by quarter end, approximately 27% higher than levels seen at the end of March 2025. As with other exchange-traded metals, copper benefitted from positive financial market positioning in the quarter amid net asset rotation into commodities.

The copper concentrate market continues to see spot treatment and refining charges fall to new record lows. Higher acid prices and precious metal premia have supported smelter profitability in a market where concentrate availability continues to run well below the level that global smelters need to maintain historical operating rates. While we do anticipate 2026 will be a stronger year for copper mine supply growth, in part helped by higher prices, we expect this imbalance in copper concentrate to persist through 2026.

Given the dual expectations of rising inflation and slower growth, this is likely to dampen copper demand growth expectations for the coming year. However, March 2026 saw positive signs emerge from China, with a strong rebound in wire and cable fabricator operating rates and clear evidence of opportunistic purchasing as the price retreated from highs. We also note the Q1 2026 closure of the Strait of Hormuz is likely to support renewed global efforts for energy system resilience and electrification, which is supportive of the trend in copper demand. Moreover, the sharp upward movement in aluminum pricing serves to lower substitution risk in applications involving electrical and heat transfer.

Global copper inventory held in exchange warehouses rose by around 450,000 tonnes in the first quarter, an increase over and above usual seasonality. With this, total on-exchange stocks reached almost 1.2 million tonnes at the end of March, the highest level since 2003. Including other reported stocks, copper inventory in weeks of consumption ended the quarter at 4.5 weeks, up from 3.2 weeks at the end of the fourth quarter and above the 20 year average of 3.5 weeks.

Operations

Quebrada Blanca

Note:

Highland Valley Copper

Copper production of 40,200 tonnes in the first quarter was 10,700 tonnes higher than the same period last year. The increase was primarily due to increased mill throughput and higher grades, partially offset by lower recoveries, as mill feed continues to be dominated by softer ore from the Lornex pit in the first half of 2026.

Copper sales volumes of 40,600 tonnes in the first quarter were 10,100 tonnes higher than the same period last year, reflecting higher production levels in the quarter.

Operating costs in the first quarter of $255 million, before changes in inventory and capitalized stripping, were $33 million higher than the same period last year, driven primarily by higher energy, labour and contractor costs relating to increased material movement.

Capitalized stripping costs in the first quarter were $34 million compared with no capitalized stripping in the same period last year. Capitalized stripping costs have increased due to the waste stripping requirements associated with HVC MLE. Capitalized stripping activity is expected to ramp up over the course of the year as per the mine plan and is expected to be impacted by changes in WTI oil prices.

HVC MLE project

Construction activities continue to ramp up across multiple work fronts, supported by strong early productivity indicators, with construction progressing largely in line with plan. Notable developments include the commencement of construction of the new truck shop, substantial progress along the tailings corridor, and progressing the installation of pilings for the mill upgrades. Detailed engineering is over 90% complete and procurement is nearing completion with ongoing delivery of materials.

HVC MLE total project capital cost is estimated to be between $2.1 and $2.4 billion and is expected to be spent between 2025 and 2028, which is unchanged from our previous disclosures. HVC MLE project capital expenditures were $188 million in the first quarter of 2026 and we continue to expect 2026 project capital expenditures to be between $900 million–$1.2 billion.

Antamina

Copper production (100% basis) of 135,600 tonnes in the first quarter was 40,600 tonnes higher than the same period last year primarily due to higher grade copper-only ore, as expected in the mine plan. The mix of mill feed in the quarter was 59% copper-only ore and 41% copper-zinc ore, compared with 62% copper-only ore and 38% copper-zinc ore in the same period last year. Zinc production (100% basis) was 62,600 tonnes in the first quarter compared with 91,300 tonnes in the same period last year due to lower zinc grade and recoveries, as expected in the mine plan.

Operating costs in the first quarter, before changes in inventory and capitalized stripping, of US$116 million (22.5% share) were US$25 million higher than the same period last year primarily due to higher labour costs relating to operating bonuses.

Carmen de Andacollo

Copper production of 13,900 tonnes in the first quarter increased by 900 tonnes compared to the same period last year, driven by higher copper grades and recoveries.

Operating costs in the first quarter of US$64 million, before changes in inventory and capitalized stripping, were US$10 million higher than the same period last year due to higher contractors and labour costs.

Cost of Sales

Cost of sales was $1.5 billion in the first quarter compared with $1.2 billion in the same period last year. We recorded $458 million of depreciation and amortization expense in the first quarter compared with

$361 million in the same period last year. The increase in cost of sales and depreciation and amortization expense were primarily the result of higher sales volumes in the quarter.

Excluding QB, total cash unit costs 1 in the first quarter were US$1.80 per pound compared to US$2.10 per pound in the same period last year primarily due to higher production and lower copper smelter processing charges, partially offset by higher operating costs at HVC and Antamina, as outlined above. Including QB, total cash unit costs 1 in the first quarter were US$2.28 per pound compared to US$2.45 per pound in the same period last year. The benefit of higher production was partially offset by higher transportation costs at QB due to alternative shipping arrangements while the shiploader repairs were completed in January.

Excluding QB, net cash unit costs 1 in the first quarter were US$1.30 per pound, or US$0.29 per pound lower than the same period last year primarily the result of the above mentioned factors. Including QB, net cash unit costs 1 for the first quarter were US$1.74 per pound, US$0.27 per pound lower than the same period last year, as a result of increased silver and molybdenum by-product credits from QB.

The table below presents our copper unit costs including QB.

Outlook

Our 2026–2028 annual production and 2026 annual cost guidance for our copper segment is outlined in our guidance tables on pages 26–29 and is unchanged from our previously disclosed guidance.

Annual production plans are based on mine plans which contain normal grade variability and periodic planned maintenance shutdowns, which are reflected in our annual production guidance for our operations. In 2026, quarterly production is generally expected to be consistent quarter over quarter, but we expect slightly lower grades and recoveries at QB in the first half of 2026 based on the current mine plan. In the second half of 2026, grades and recoveries are expected to improve at QB. We also expect lower mill throughput and recoveries at HVC in the fourth quarter of 2026 as we process less Lornex ore and more ore from the Bethlehem and Highmont pits.

2026 sustaining capital expenditures in our copper segment are expected to be between $1.2–$1.3 billion. The 2026 guidance includes $390–$460 million for QB TMF development work, which is unchanged from our previous disclosures.

2026 capitalized stripping costs in our copper segment are expected to increase compared to 2025 to between $450–$550 million as stripping activities increase to enable HVC MLE where capitalized stripping costs are expected to remain at elevated levels through 2029.

Note:

Our 2026 growth capital expenditure guidance of $1.3–$1.6 billion includes $900 million–$1.2 billion relating to HVC MLE. The remaining growth capital primarily relates to our other near-term copper growth projects including Zafranal, and is focused on advancing engineering, feasibility studies, and permitting.

Projects and Copper Growth

As previously disclosed, we are prioritizing capital and resources toward QB while advancing execution of HVC MLE. In parallel, we continue to advance our copper growth portfolio by progressing high-value projects toward sanction readiness. This includes advancing permitting, securing land access, and defining the business cases for Zafranal and San Nicolás. Feasibility studies, detailed engineering, and early works are underway to position these projects for future sanction decisions.

Zafranal

In 2026, the focus is on identifying, evaluating, and implementing opportunities to enhance the business case while preparing for a future sanction decision. Advanced works activities ceased during the first quarter of 2026, with contractors demobilized from site at the end of February 2026. Progress continues across key components, including additional exploration activities in the project area, permitting, land access, social and some technical activities to support the business case improvement process, based on an adjusted timeline.

Minas de San Nicolás

All actions related to the MIA-R (Environmental Impact Assessment) and ETJ (Land Use Change) permits have been completed, with regulatory decisions pending. In parallel, we continue to advance engineering on critical infrastructure to increase confidence in the feasibility study, further de-risk the execution strategy and position the project for a potential sanction decision, subject to receipt of permits. As at March 31, 2026, more than 40% of engineering had been completed, with progress expected to reach approximately 50% by mid-2026.

Drilling activities are continuing, with a focus on condemnation drilling and geological evaluation in proximity to the projected mine area.